Till date, we have seen relentless efforts from the Indian Government to fight Coronavirus, in the form of lockdown and other safety measures.
Now that the country-wise lockdown is in full effect, it’s time for the government to look into the consequences of the lockdown.
Because of the lockdown, some parts of the working class like daily labor and small-scale businesses are reporting huge financial losses and challenges in driving income for regular needs.
While the government has already announced plans of releasing relief packages, it is yet to finalize the packages.
As the reports say, the government is likely thinking about more than a USD 20 billion stimulus package to address the existing economic challenges of the needy and turndown the virus outbreak.
The package could be in the range of Rs. 2.3 lakh crore, a government source has reportedly told media.
The package, likely to be out by this weekend, ensures direct cash deposits to bank accounts of around 100 million poor and to the businesses badly it by the coronavirus lockdown.
Meanwhile, the government is also thinking to increase its borrowing from the planned gross borrowing of Rs. 7.8 lakh crore for the FY 2020-21, beginning on April 01, 2020.
Towards this end, the government is asking the Reserve Bank to buy its securities being issued.
Doing so will be the Central Bank’s first such move in decades, which it has been avoiding over the fear of inflation.
“The RBI will have to buy bonds like other central banks in the world,” said the official.
Another official opines that the government may also use the option off overdraft that RBI issues to state governments during times of cash crunch.
The Coronavirus has so far claimed 21,000 lives globally, with 7500 deaths in Italy alone.
Meanwhile, Spain has registered 3600 deaths, followed by US (900 deaths and 60,000 positive cases), among others.
While India has so far recorded 12 deaths and 600 positive cases, and the country is currently under complete lockdown for 21 cases.
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